The jailed teacher Gillian Gibbons said last night she would like to return to work in Sudan at the earliest opportunity as efforts intensified to secure her release following the arrival of prominent British Muslim peers in Khartoum.

After hours of delicate negotiations between Sudanese diplomats and a UK delegation, hopes she could be released during the next few days grew as Lord Ahmed and Baroness Warsi prepared to meet President Omar al-Bashir, the only figure with the authority to lift the sentence, imposed for blasphemy.

Earlier the two peers, Labour's Ahmed, and Tory Warsi, met Gibbons, who is reported to be both physically and psychologically 'fine and well'.

The 54-year-old was jailed by a Sudanese court last Thursday after allowing her class of seven-year-olds to name a teddy bear Mohammed. Last night Gibbons released a statement amid mounting speculation that she could be freed early this week. It stated: 'I'm really sad to leave and if I could go back to work tomorrow I would.

She added: 'I want people to know I've been well treated, and especially that I'm well fed. I've been given so many apples I feel I could set up my own stall.'

'The Sudanese people in general have been pleasant and very generous, and I've had nothing but good experiences during my four months here'.

Hours before yesterday's meetings between Ahmed and Warsi, the shadow minister for community cohesion, and Sudanese officials, Gibbons's chief defence lawyer said he was confident the primary school teacher would be pardoned. Kamal al-Gizouli admitted he would be surprised if the peers were not told by the President that 'we have dropped this charge'. Sources close to the President conceded the chances of securing the primary teacher's freedom were enhanced because of the Muslim-led UK delegation. However, hopes of a meeting yesterday between the President and peers appeared to be fading last night with the crucial negotiations postponed until today.

Meanwhile, details have emerged of the controversial character who brokered yesterday's fresh attempt to free Gibbons. Lobbyist David Hoile, who works for the Sudanese government, was instrumental in coaxing Bashir to meet the peers during strenuous diplomatic efforts last week. He is regarded as a contentious figure for his strongly pro-Sudanese views. A former vice-chairman of the Federation of Conservative Students, Hoile has been described as a militant anti-communist, the leader of campaigns against left-wing groups in places such as El Salvador and Nicaragua. One allegation against Hoile however, is that he once wore a 'Hang Mandela' T-shirt during an FCS conference. He strenuously denies this and says there is no evidence to support it.

Speaking from Khartoum, Hoile told The Observer yesterday's meetings were 'tricky' and that they were still 'waiting for things to work out'. His involvement in Gibbons's case began the instant he heard of her arrest. He immediately flew to Khartoum to try to defuse the situation. An author of several books on Sudanese politics, Hoile has maintained strong contacts in that country's government, chiefly with Ghazi Salahuddin, the President's foreign policy adviser.

The developments came the day after demonstrations in Khartoum during which thousands of hardline Islamists gathered outside the city's presidential palace and demanded that Gibbons be shot. Some brandished swords with the throng reportedly chanting: 'Kill her, kill her, kill her by firing squad.' By contrast, the mood in Sudan's capital remained calm yesterday, with the excitement largely confined to the lobby of Kartoum's Hilton hotel lobby - where Ahmed and Warsi are staying - was abuzz with journalists and diplomats.

In another positive move, Dr Khalid al-Mubarak, spokesman for the Sudanese Embassy in London, played down the protests, saying they were unrepresentative of national feeling and run 'only by a small group'.

Gibbons remained in a secret location - described by one source as comfortable - last night amid continuing fears for her safety. Her 27-year-old son, John, said he and his sister, Jessica, had spoken to her by telephone and she seemed in good form. Speaking outside his Liverpool home yesterday, he said: 'We both feel a lot better about speaking to my mum. It was nice to hear her voice. She's bearing up very well. She sounded strong.'